Lyceum of the Philippines vs CA Case Digest

Lyceum of the Philippines vs. Court of Appeals

[GR 101897, 5 March 1993]

Facts: Lyceum of the Philippines Inc. had sometime before commenced in the SEC a proceeding
(SEC-Case No. 1241) against the Lyceum of Baguio, Inc. to require it to change its corporate name
and to adopt another name not "similar [to] or identical" with that of petitioner. In an Order dated 20
April 1977, Associate Commissioner Julio Sulit held that the corporate name of petitioner and that of
the Lyceum of Baguio, Inc. were substantially identical because of the presence of a "dominant"
word, i.e., "Lyceum," the name of the geographical location of the campus being the only word which
distinguished one from the other corporate name. The SEC also noted that Lyceum of the
Philippines Inc. had registered as a corporation ahead of the Lyceum of Baguio, Inc. in point of time,
and ordered the latter to change its name to another name "not similar or identical [with]" the names
of previously registered entities. The Lyceum of Baguio, Inc. assailed the Order of the SEC before
the Supreme Court (GR L-46595). In a Minute Resolution dated 14 September 1977, the Court
denied the Petition for Review for lack of merit. Entry of judgment in that case was made on 21
October 1977.

Armed with the Resolution of the Supreme Court, the Lyceum of the Philippines then wrote all the
educational institutions it could find using the word "Lyceum" as part of their corporate name, and
advised them to discontinue such use of "Lyceum." When, with the passage of time, it became clear
that this recourse had failed, and on 24 February 1984, Lyceum of the Philippines instituted before
the SEC SEC-Case 2579 to enforce what Lyceum of the Philippines claims as its proprietary right to
the word "Lyceum." The SEC hearing officer rendered a decision sustaining petitioner's claim to an
exclusive right to use the word "Lyceum." The hearing officer relied upon the SEC ruling in the
Lyceum of Baguio, Inc. case (SEC-Case 1241) and held that the word "Lyceum" was capable of
appropriation and that petitioner had acquired an enforceable exclusive right to the use of that word.
On appeal, however, by Lyceum Of Aparri, Lyceum Of Cabagan, Lyceum Of Camalaniugan, Inc.,
Lyceum Of Lallo, Inc., Lyceum Of Tuao, Inc., Buhi Lyceum, Central Lyceum Of Catanduanes,
Lyceum Of Southern Philippines, Lyceum Of Eastern Mindanao, Inc. and Western Pangasinan
Lyceum, Inc.,, which are also educational institutions, to the SEC En Banc, the decision of the
hearing officer was reversed and set aside. The SEC En Banc did not consider the word "Lyceum" to
have become so identified with Lyceum of the Philippines as to render use thereof by other
institutions as productive of confusion about the identity of the schools concerned in the mind of the
general public. Unlike its hearing officer, the SEC En Banc held that the attaching of geographical
names to the word "Lyceum" served sufficiently to distinguish the schools from one another,
especially in view of the fact that the campuses of Lyceum of the Philippines and those of the other
Lyceums were physically quite remote from each other. Lyceum of the Philippines then went on
appeal to the Court of Appeals. In its Decision dated 28 June 1991, however, the Court of Appeals
affirmed the questioned Orders of the SEC En Banc. Lyceum of the Philippines filed a motion for
reconsideration, without success. Lyceum of the Philippines filed the petition for review.

Issue:
1. Whether the names of the contending Lyceum schools are confusingly similar.
2. Whether the use by the Lyceum of the Philippines of "Lyceum" in its corporate name
has been for such length of time and with such exclusivity as to have become associated or
identified with the petitioner institution in the mind of the general public (or at least that
portion of the general public which has to do with schools).
Held:

1. The Articles of Incorporation of a corporation must, among other things, set out the name of the
corporation. Section 18 of the Corporation Code establishes a restrictive rule insofar as corporate
names are concerned. It provides that "No corporate name may be allowed by the Securities an
Exchange Commission if the proposed name is identical or deceptively or confusingly similar to that
of any existing corporation or to any other name already protected by law or is patently deceptive,
confusing or contrary to existing laws. When a change in the corporate name is approved, the
Commission shall issue an amended certificate of incorporation under the amended name." The
policy underlying the prohibition in Section 18 against the registration of a corporate name which is
"identical or deceptively or confusingly similar" to that of any existing corporation or which is
"patently deceptive" or "patently confusing" or "contrary to existing laws," is the avoidance of fraud
upon the public which would have occasion to deal with the entity concerned, the evasion of legal
obligations and duties, and the reduction of difficulties of administration and supervision over
corporations. Herein, the Court does not consider that the corporate names of the academic
institutions are "identical with, or deceptively or confusingly similar" to that of Lyceum of the
Philippines Inc.. True enough, the corporate names of the other schools (defendant institutions)
entities all carry the word "Lyceum" but confusion and deception are effectively precluded by the
appending of geographic names to the word "Lyceum." Thus, the "Lyceum of Aparri" cannot be
mistaken by the general public for the Lyceum of the Philippines, or that the "Lyceum of
Camalaniugan" would be confused with the Lyceum of the Philippines. Further, etymologically, the
word "Lyceum" is the Latin word for the Greek lykeion which in turn referred to a locality on the river
Ilissius in ancient Athens "comprising an enclosure dedicated to Apollo and adorned with fountains
and buildings erected by Pisistratus, Pericles and Lycurgus frequented by the youth for exercise and
by the philosopher Aristotle and his followers for teaching." In time, the word "Lyceum" became
associated with schools and other institutions providing public lectures and concerts and public
discussions. Thus today, the word "Lyceum" generally refers to a school or an institution of learning.
Since "Lyceum" or "Liceo" denotes a school or institution of learning, it is not unnatural to use this
word to designate an entity which is organized and operating as an educational institution. To
determine whether a given corporate name is "identical" or "confusingly or deceptively similar" with
another entity's corporate name, it is not enough to ascertain the presence of "Lyceum" or "Liceo" in
both names. One must evaluate corporate names in their entirety and when the name of Lyceum of
the Philippines is juxtaposed with the names of private respondents, they are not reasonably
regarded as "identical" or "confusingly or deceptively similar" with each other.

2. The number alone of the private respondents in the present case suggests strongly that the
Lyceum of the Philippines' use of the word "Lyceum" has not been attended with the exclusivity
essential for applicability of the doctrine of secondary meaning. It may be noted also that at least one
of the private respondents, i.e., the Western Pangasinan Lyceum, Inc., used the term "Lyceum" 17
years before Lyceum of the Philippines registered its own corporate name with the SEC and began
using the word "Lyceum." It follows that if any institution had acquired an exclusive right to the word
"Lyceum," that institution would have been the Western Pangasinan Lyceum, Inc. rather than
Lyceum of the Philippines. Hence, Lyceum of the Philippines is not entitled to a legally enforceable
exclusive right to use the word "Lyceum" in its corporate name and that other institutions may use
"Lyceum" as part of their corporate names.
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